Really really strange.
It soudned like you might be using a filter to modify the field, but that looks correct to me.
For some reason, when the form is submitted, the html content is being used, rather than the val()
in jQuery.
This is basically impossible so there must be something else going on.
I would perhaps suggest there is a JS conflict or something is modifying the behaviour somehow.
The HTML you pasted above, was this from “view source” or using an inspector like firebug?
If it was the former, can you try with firebug, so we can see if any JS has altered the fields after they have been displayed?
Thanks